RBI Imposes ₹80,000 Monetary Penalty on Dr. Babasaheb Ambedkar Nagari Sahakari Bank
Summary
The Reserve Bank of India imposed a monetary penalty of ₹80,000 on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad for non-compliance with directions on Exposure Norms and Statutory Restrictions for Urban Cooperative Banks, and operational instructions under the Supervisory Action Framework. The penalty was imposed following a statutory inspection with reference to the bank's financial position as of March 31, 2025, and after the bank was given opportunity to show cause. The bank was found to have exceeded prescribed regulatory ceilings on certain advances and offered deposit interest rates higher than those offered by the State Bank of India.
“The Reserve Bank of India (RBl) has, by an order dated April 17, 2026, imposed a monetary penalty of ₹80,000/- (Rupees Eighty Thousand only) on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad (the bank), for non-compliance with certain directions issued by RBI on 'Exposure Norms & Statutory/ Other Restrictions – UCBs' and operational instructions issued under 'Supervisory Action Framework (SAF)'.”
Urban cooperative banks should audit their exposure limits and deposit pricing against RBI's Supervisory Action Framework requirements, as this penalty demonstrates active RBI enforcement of these specific compliance areas.
About this source
The Reserve Bank of India is India's central bank. Its press release page is the official channel for monetary policy decisions, banking supervision actions, financial stability reports, FDI data, and the daily money market operations log. GovPing tracks every release as it appears, around 200 a month. Watch this if you cover Indian banking, manage exposure to the rupee, advise on Indian financial regulation, or run payments or fintech in South Asia. Recent examples: an RBI MPC decision holding the repo rate at 5.25% with GDP and inflation projections, financial data on 3,100 FDI companies in India 2024-25, the daily money market operations log.
What changed
The RBI imposed a monetary penalty of ₹80,000 on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd. for two specific violations: failure to adhere to prescribed regulatory ceilings on certain advances, and offering interest rates on certain deposits higher than those offered by the State Bank of India. The penalty was imposed under Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949, following a statutory inspection dated March 31, 2025.
Affected urban cooperative banks should review their exposure norms compliance and deposit pricing practices to ensure adherence to RBI's Supervisory Action Framework directions. The action is stated to be without prejudice to any other measures RBI may take against the bank.
Penalties
₹80,000
Archived snapshot
Apr 24, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
Press Releases
| () | |
| Date : Apr 23, 2026 | |
| RBI imposes monetary penalty on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad | |
| | The Reserve Bank of India (RBl) has, by an order dated April 17, 2026, imposed a monetary penalty of ₹80,000/- (Rupees Eighty Thousand only) on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Norms & Statutory/ Other Restrictions – UCBs’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’.This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
- failed to adhere to the prescribed regulatory ceiling on certain advances; and
- offered interest rates on certain deposits higher than those offered by the State Bank of India, in non-adherence to directions issued under Supervisory Action Framework (SAF). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/132 | | The Reserve Bank of India (RBl) has, by an order dated April 17, 2026, imposed a monetary penalty of ₹80,000/- (Rupees Eighty Thousand only) on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Norms & Statutory/ Other Restrictions – UCBs’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’.This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
- failed to adhere to the prescribed regulatory ceiling on certain advances; and
- offered interest rates on certain deposits higher than those offered by the State Bank of India, in non-adherence to directions issued under Supervisory Action Framework (SAF). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/132 |
| The Reserve Bank of India (RBl) has, by an order dated April 17, 2026, imposed a monetary penalty of ₹80,000/- (Rupees Eighty Thousand only) on Dr. Babasaheb Ambedkar Nagari Sahakari Bank Ltd., Aurangabad (the bank), for non-compliance with certain directions issued by RBI on ‘Exposure Norms & Statutory/ Other Restrictions – UCBs’ and operational instructions issued under ‘Supervisory Action Framework (SAF)’.This penalty has been imposed in exercise of powers conferred on RBI under the provisions of Section 47A(1)(c) read with Sections 46(4)(i) and 56 of the Banking Regulation Act, 1949.
The statutory inspection of the bank was conducted by the RBI with reference to its financial position as on March 31, 2025. Based on supervisory findings of non-compliance with RBI directions and related correspondence in that regard, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for its failure to comply with the said directions. After considering the bank's reply to the notice, additional submissions made by it and oral submissions made during the personal hearing, RBI found, inter alia, that the following charges against the bank were sustained, warranting imposition of monetary penalty:
The bank had:
- failed to adhere to the prescribed regulatory ceiling on certain advances; and
- offered interest rates on certain deposits higher than those offered by the State Bank of India, in non-adherence to directions issued under Supervisory Action Framework (SAF). This action is based on deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers. Further, imposition of this monetary penalty is without prejudice to any other action that may be initiated by RBI against the bank.
(Brij Raj)
Chief General Manager
Press Release: 2026-2027/132 | |
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
;)
Named provisions
Related changes
Get daily alerts for RBI Press Releases
Daily digest delivered to your inbox.
Free. Unsubscribe anytime.
About this page
Every important government, regulator, and court update from around the world. One place. Real-time. Free. Our mission
Source document text, dates, docket IDs, and authority are extracted directly from RBI.
The summary, classification, recommended actions, deadlines, and penalty information are AI-generated from the original text and may contain errors. Always verify against the source document.
Classification
Who this affects
Taxonomy
Browse Categories
Get alerts for this source
We'll email you when RBI Press Releases publishes new changes.
Subscribed!
Optional. Filters your digest to exactly the updates that matter to you.